The online financial group plans to take a majority stake in Shinsei eventually, aiming to create a major banking group. It would need to obtain a bank holding-company license from the government to own more than 50% of Shinsei.

SBI, which has said it can overhaul the lender, has promised to make every effort to repay the 350 billion yen ($3.1 billion) in public money Shinsei received during a banking crisis two decades ago.

(Reporting by Mari Saito; Editing by William Mallard)